Budget 2013: Punjab seeks special package for bicycle industry

CHANDIGARH : Punjab Government today sought a special package for bicycle industry of the state, including review of 2 per cent excise duty and subsidising the industry with "freight equalisation scheme."

A delegation of the All India Cycle Manufacturers Association (AICMA), led by its Chairman Pankaj Munjal had called on Punjab Chief Minister requesting him to raise the issues pertaining to cycle industry before the Union Government, an official spokesman said.

In a letter to the Prime Minister, the Chief Minister urged that in the current scenario, when petrol/diesel prices were on the rise and becoming unaffordable, the self employed people's transport "Bicycles" must be promoted in order to sustain and generate more employment besides keeping a check on environmental pollution.

Badal further said that the cycle industry has been losing sheen over the years due to no initiatives, schemes and promotion policies by the Government of India.

He said that over the last 5 years, the bicycle industry growth has been lesser than GDP growth and in fact the industry has declined by 8 per cent in the current year.

The Chief Minister apprised PM that due to imposition of 1 per cent excise duty on bicycles in the Union Budget, the bicycle industry has received a major jolt.

Demanding freight equalization support, the Chief Minister said that as the Chinese Government supports its industries for exports by way of subsidising them with freight equalisation schemes, Government of India should also take this step for saving the indigenous bicycle industry.

Badal also asked the Prime Minister to raise the export benefit from current 12.3 per cent of FOB price to 15 per cent of FOB price, besides ensuring reimbursement of freight from the factory of production up to port.

He also sought exemption from excise duty on Bicycles besides subsidy to people living Below Poverty Line (BPL) for bicycle purchase.